First Northern Bank (FNRN) Q2 2024 earnings summary

Executive summary

• Net income for the six months ended June 30, 2024 was $8.7 million, down 13.5% year-over-year; Q2 net income was $4.4 million, down 3.1% from Q2 2023.

• Diluted EPS for the six months was $0.57, down 13.6% year-over-year; Q2 diluted EPS was $0.29, down 3.3% from Q2 2023.

• Book value per share increased to $10.75 as of June 30, 2024, up 3.0% from March 31, 2024.

Financial highlights

• Net interest income for the six months was $31.3 million, down 7.2% year-over-year; Q2 net interest income was $16.0 million, down 10.2% from Q2 2023.

• Net interest margin for the six months was 3.58%, down from 3.76% year-over-year; Q2 margin was 3.66%, down from 3.97% in Q2 2023, but improved from 3.49% in Q1 2024 to 3.65% in Q2 2024.

• Total assets reached $1.89 billion as of June 30, 2024, up 0.9% from December 31, 2023, but down 1.3% year-over-year.

• Total deposits were $1.71 billion as of June 30, 2024, up 0.9% from December 31, 2023, but down 2.9% year-over-year.

• Total net loans (including loans held-for-sale) were $1.049 billion as of June 30, 2024, down 0.3% from December 31, 2023, but up 3.0% year-over-year.

Outlook and guidance

• Loan demand and deposit balances for the remainder of 2024 will depend on economic and competitive conditions, Federal Reserve actions, and market competition.

• The company emphasizes non-interest-bearing demand deposits and money market accounts to manage interest rate sensitivity.

• Management remains focused on improving operating efficiency and shareholder value.

• Continued emphasis on balance sheet funding and cost control in an inflationary environment.